Friday, November 22, 2019
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Pfizer (PFE), Netflix (NFLX) and Dominion Energy (D). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Pfizer’s shares have underperformed the Zacks Large-Cap Pharmaceuticals industry year to date (-13.6% vs. +4.7%). The Zacks analyst believes that the Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of Upjohn unit with Mylan, if successful, will make Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines.
The smaller Pfizer should see better revenue growth as the Lyrica LOE cliff will go away. Pfizer expects continued strong growth of key brands like Ibrance, Xeljanz and Eliquis to drive sales in the future quarters. Pfizer is also strengthening its pipeline and hopes to launch new innovative medicines in the next five years, which can drive long-term growth.
(You can read the full research report on Pfizer here >>>)
Shares of Netflix have gained 7% in the past three months against the Zacks Broadcast Radio and Television industry’s rise of 7.1%. The Zacks analyst believes that upcoming streaming services from Disney, Apple, Comcast and AT&T pose a significant threat to Netflix’s streaming dominance.
Netflix’s third-quarter 2019 subscriber addition rate faltered primarily due to a price hike in the United States, which, however aided ARPU growth on a year-over-year basis. Management now expects net additions in the paid subscriber base to decline in 2019 due to higher churn rate and increased competition.
Moreover, high streaming content obligation and increased spending are expected to hurt free cash flow generation. Nevertheless, a solid content portfolio and expanding bundle-offerings through partnerships with Telefonica, KDDI, AT&T, Comcast, DISH, Verizon, Charter, Altice, T-Mobile and Sky bode well for the streaming platform.
(You can read the full research report on Netflix here >>>)
Dominion Energy’s shares have gained 6.4% over the past six months against the Zacks Electric Power industry's rise of 4.9%. The Zacks analyst believes that the company is benefiting from organic growth projects and acquisition synergies.
The company’s third-quarter earnings were better than expected and improved from the year-ago figure. The improvement was due to strong contribution from its business units. The company’s long-term capital spending plan of $26B for expansion of electric transmission and distribution, addition of renewable assets, natural gas facilities and midstream assets is a major positive. Contribution from the new Southeast Energy segment is also contributing to its performance.
However, the company’s future earnings may be largely affected by share dilution. Further, ongoing delay and rising cost of the Atlantic Coast Pipeline project may impact the company’s profitability.
(You can read the full research report on Dominion Energy here >>>)
Other noteworthy reports we are featuring today include Costco Wholesale (COST), TransDigm Group (TDG) and Charles Schwab (SCHW).
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Pfizer's (PFE) Business Reorganization Can Aid Sales Growth
User Addition Rate Decline Hurts Netflix's (NFLX) Prospects
Dominion (D) Gains from Investment, Share Dilution a Concern
Acquisitions Aids TransDigm (TDG), Rising Debt Levels Hurt
Per the Zacks Analyst, TransDigm strengthens its position in proprietary aerospace components' niche markets, through strategic acquisitions.
E-commerce Growth, Dividends & Buybacks Aid FedEx (FDX)
Per the Zacks analyst, FedEx is benefiting from rising package volumes, courtesy of rapid e-commerce growth.
Trading Focus, Buyouts Aid Schwab (SCHW) Amid Lower Rates
Per the Zacks analyst, Schwab's efforts to improve market share in trading and opportunistic acquisitions are likely to aid revenues.
Rise in Trading Activity Benefits TD Ameritrade (AMTD)
The Zacks analyst believes TD Ameritrade is poised to growth through improving trading activities as DARTs expected to rise.
Arch Capital (ACGL) Rides on Solid Premium Growth, Cost High
Per the Zacks analyst, strong premium growth backed by diverse product & service portfolio continues to drive long-term growth for Arch Capital.
Core Product Segment Drives Masimo (MASI) Amid Competition
Masimo has been gaining significantly from its core Product segment. The Zacks Analyst is however apprehensive about the stiff competition in the MedTech space.
Planet Fitness (PLNT) Banks on Expansion Amid High Debt
Per the Zacks Analyst, Planet Fitness' consistent focus on strategic partnership and international expansion likely to bode well for the company. Yet, high debt remains a concern.
Vincent Auto Buyout to Buoy Copart's (CPRT) Prospects
Apart from expanding its network of storage facilities, the Zacks analyst believes that the buyout of Vincent Auto will drive Copart's sales in Kentucky.
Decent Comparable Sales Run to Fuel Costco's (COST) Top Line
Per the Zacks analyst, Costco's growth strategies, sturdy comparable sales performance and strong membership trends reinforce its position.
Cadence (CDNS) Rides on EDA, Hardware & IP Solutions Demand
Per the Zacks analyst, Cadence benefits from solid demand of its broad based product portfolio. Traction witnessed by recently introduced EDA-optimized Cloud-Hosted Design solution is also a positive.
GoPro (GPRO) Remains Saddled with Price Wars & Margin Woes
Per the Zacks analyst, GoPro is facing stiff competition from low-cost alternatives, leading to increased commoditization of action cameras, thereby affecting its premium brand image & profitability.
Elevated Costs, Low Rates Hurt Interactive Brokers (IBKR)
Per the Zacks analyst, higher costs because of investments in technology upgrades will likely hamper Interactive Brokers' profits.
Weak Pressure Pumping Market to Hurt ProPetro (PUMP)
The Zacks analyst is concerned over the weak market sentiment and lower pricing with respect to pressure pumping services in the Permian Basin, which is expected to weigh on ProPetro's revenues.
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Dominion Energy Inc. (D) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research